We want to be No.1 next fiscal: HC Hong, CEO, Samsung India

Samsung is aiming to be the top multinational company in India by revenue by the end of the fiscal year through March 2017,Romit Guha&Gulveen Aulakh | ET Bureau | December 12, 2015, 08:27 IST

Samsung is aiming to be the top multinational company in India by revenue by the end of the fiscal year through March 2017, driven mainly by a young market and fast growing economy, says HC Hong.Samsung is aiming to be the top multinational company in India by revenue by the end of the fiscal year through March 2017, driven mainly by a young market and fast growing economy.

Speaking to Romit Guha and Gulveen Aulakh, HC Hong, the Korean major’s India president and chief executive, conceded that 2015-16 has been challenging, but said growth would pick up next fiscal year. Samsung would have to expand local manufacturing capacity to keep pace with the expected growth, he said. Edited excerpts:

Samsung completed 20 years in India on December 5. How has the journey been?

As you can see that from a baby born 20 years ago, we are now grown up to a 20 something young company. Today, we are a leading brand of consumer electronics and mobile phones.

When does Samsung expect to be the No. 1 MNC by revenue in India?

I don’t know how we will rank by the end of this fiscal year ending March 2016. However, we want to be No. 1 in the next fiscal year for sure.

What did you end 2015 fiscal year at and how much revenue do you expect in 2016?

We usually do not share projected or expected revenue. All I can say is that we have been growing consistently. I see the Indian market would be the fastest growing market in the world. In 2017, it would be the second largest consumer base of smartphones after China. This is because India is a young country and the economy is growing very fast. India is the only country in the world which is growing so fast.

Can you elaborate on your expansion plans? Are you trying to expand the old factory or you are trying to set up a new one?

We are checking various options. We should expand because the cellular market will be expanding fast. Our current capacity was planned three years or five years ago, and to catch up with consumers, we have to expand.

How has this fiscal year been for Samsung, as consumer sentiment was a bit challenging, except the period of Diwali?

In comparison to other companies, Samsung has been able to achieve good business this year. We are expecting the market to recover by next year. We had very good sales during the festival season, especially during Diwali.

What is a bigger challenge for you – increasing competition or fast-changing consumer sentiment?

Consumer requirements in our industry keep changing frequently. The consumer needs across all our product segments keep shifting and it is our duty to match up. So every single product, innovation, competitor movement or a new product is a challenge. There is a saying in Korea that if you sleep, you lose. I tell everyone that the competition is dynamic and they are working when we are sleeping.

On the consumer electronics side, one of your major competitors, LG, has reduced prices. Would Samsung follow? I don’t know about other companies. But we provide the best value to the consumers. We have products across price points.

How was the Diwali period sale for Samsung?

There was 10-30% growth in our sales during Diwali this year across product categories. Cellular, 30%, and other consumer electronic products, 10%.

You have been in India since January. What changes have you brought about within Samsung India?

I must confess I am learning here. But I have taken steps to make the company more efficient.

Are you open to expanding the online portfolio?

We are keeping very close eyes on the development of the online channel. That’s why we have recently launched two products only through the online channel.

How did these products do?

Very good. I think the online customer is young, and to satisfy them, we provide online also. So, a balance has to be there between offline and online customer to increase our sales.

How do you plan to give back to the consumer?

We have a plan to celebrate 20 years with them (consumers). But those details, we will let you know later. As far as the community is concerned, we are going to add Smart Class in 200 schools as part of our CSR activity. We have already completed Smart Class in 200 schools. We will take that number to 400 by the end of this fiscal year.